Conversion of Proprietorship to Pvt. Limited Company

JIMMY VADERA (Practicing C.A) (367 Points)

14 July 2011  

Hello All !!!

I want to convert sole proprietorship into a Pvt. Limited company.

Question :

1. Should I take new registration number for VAT, CST & Excise.

2. As per my research, if some conditions are satisfied as per I.T. rules, Capital Gain Tax on transfer of asset from proprietor to Company, shall not attract Tax. Is it correct? If no, then please clarify.

3. As per reseach, It has been found that company should mention in its object clause, "takeover of sole Proprietorship firm". Then it shall be easy to proceed. Is it correct? Idf No, Please clarify.

Please give answers at your earliest.